FCC Says Incentive Auction Reaches End Point
Jan 18, 2017, 6:33 PM by Eric M. Zeman
The FCC today said the close of the fourth stage will mark the end of bidding in the auction for 600 MHz airwaves. The auction has been in progress since last May and worked its way through several stages. Television broadcasters agreed to give up portions of their spectrum holdings, which were then sold to wireless carriers. The repurposed airwaves will eventually be used for mobile broadband services and the TV stations relocated. FCC Chairman Tom Wheeler called the auction a success, but it fell far short of initial projections as far as generating revenue is concerned. "The world's first spectrum incentive auction has delivered on its ambitious promise. Reaching the Final Stage Rule means the benefits of the auction are indisputable," said Wheeler. "We will repurpose 70 MHz of high-value, completely clear low-band spectrum for mobile broadband on a nationwide basis. On top of that, 14 MHz of new unlicensed spectrum — the test bed for wireless innovation — will be available for consumer devices and new services. The auction will provide $10.05 billion to broadcast television licensees who participated and billions towards deficit reduction." Broadcasters had expected to see as much as $86 billion for 126 MHz of licenses. When bidding in rounds two and three bottomed out, the amount of spectrum offered by broadcasters was reduced accordingly. "There is still a long road ahead to successfully implement the post-auction transition of broadcast stations to their new channels and bring the new wireless and unlicensed spectrum to market," noted Wheeler. "This will be an extremely important task for my successor and the new Commission; I wish them well." Wheeler is leaving his post at the FCC as President-Elect Donald Trumps takes office. T-Mobile, AT&T, and Verizon Wireless all participated, but Sprint did not. The FCC hasn't said what new spectrum licenses the carriers and other bidders have won.
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